I just want to report in and say that it has now been two years since I replied to this thread, seeking help or a fix for this issue, and on every rendition of Windows since Windows 8 the issue still persists. I have long since reinstalled Windows 7, although I keep Windows 8+ on my laptop where I check on occasion to see if the problem has been resolved. Of course, it still hasn't been.
So lets put it to you guys simply:
YOU SCREWED UP.
So if you canfix the problem, you NEED to make it a priority. NOW. Many, many people rely on good recording quality for work (including hundreds and hundreds of active YouTubers, like myself), and it is completely unacceptable that we have to roll back to an older version of an OS (or use *shudder* Apple's Macintosh OS) just to get the audio quality that we PAID FOR!
And if you can'tfix the problem, then for God's sake BE HONEST ABOUT IT. Your consumers DESERVE to know what they are paying for! Luckily I like Windows 7 just fine, and I at least have my laptop for future versions of the OS, but this... ugh. I'm disappointed, Microsoft. Very disappointed.